Legacy Investing & Wealth Management Market Mondays – 4/10/17

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Sorry that I’ve been missing in action but my work schedule has been crazy. I will get back to more of a regular schedule soon.

I’ve seen some really good articles recently on ways of saving money and eliminating debt. From the Pennyhoarder article I shared on Twitter last week here are a few ways of eliminating debt. I’m also adding a few of my own:

First, if you have a million credit cards all with high varying interest rates, either consolidate them by getting a personal loan or do a balance transfer to one credit card. Personal loan rates (depending on your credit score) can be in the single digits compared to the average credit card rate. Before you do a balance transfer make sure you check the terms. Most will offer no interest for a certain period of time then jump you up to 15% or so lol. The devil is in the details!

Another way is to use Dave Ramsey’s debt snowball method – paying off the smaller credit card balances (while still paying the minimum balances on the others) then moving on to the next credit card. Even if the interest rate is not that high on the smallest credit card balance you are wiping away credit cards one at a time. Here is what I would add; as you’re paying the credit cards off you should be closing some of the cards with the highest interest rates. Leave the ones with the lower interest rates open for credit score purposes. The challenge while you leave some open is to stop using them unless it’s for small purchases that you pay off early every month. This will get your credit score moving up again.

Negotiating your bills down is a strategy I’ve never used before but could be worth a try. There is even a free app called Clarity Money (looks like only on iOS right now) to help you find and cancel wasteful accounts, get organized, manage and lower your bills by taking advantage of discounts you may not know you’re eligible for and get better deals on credit cards. You can also create a savings account with automatic transfers to encourage saving but you can do that with most online banking.

Making extra payments on any existing loan will cut your payment schedule and also the amount of interest you pay. This is especially true if you’re a homeowner. You would be surprised at the number of years you cut from a 30-year mortgage from paying lump sum amounts to the principal. We had a 30-year loan and cut about 7 years from making extra payments once a year. I’m just talking about paying up to $5,000 per year for about 5 years straight. Whatever strategies you use to pay off debt there needs to be patience and diligence. It’s not going to happen overnight, but it will so keep focused and you’ll look up one day and be debt free!

Since the last Market Mondays post, the S&P 500 went up several percent and is currently trading at 2357 as of today’s closing. It’s been trending lower since making an all-time high on March 1st. Looking at the charts, the S&P 500 is forming a wedge and its either going to break down or break out. See the picture below and look to the right at the red lines drawn to see the wedge pattern.

Since we haven’t had a correction in so long (since election night) we’re overdue and it very well could have started in March. It would be healthy and everyone is looking for it. Once that happens then I think the market will resume higher but I’m not very invested until then.

Please visit our website at www.LegacyInvesting.net and contact us today for a FREE consultation on becoming financially fit and learning how to make money investing in the stock market. You can make money in ANY type of market (bull or bear). When we meet I’ll give you more information about our services and find out what your financial goals are. If I can help you, we can move forward; if not, no problem but I’m always just a phone call away from any questions or quick advice you want. Get your finances in shape this year! Let’s connect and build generational wealth together.

Disclaimer – Legacy Investing & Wealth Management LLC or any of its advisers are not liable in any way for any losses incurred through trading by readers of this weekly blog. Any information or strategies of trading suggested here involve risk of capital loss and this weekly blog is not considered investment advice. Individuals who invest in securities are solely and completely responsible for any and every outcome that may occur.

About legacyinvesting2015

Doug Hayes has always had a mindset of entrepreneurship and wealth building. He started his first business (a community newspaper called “Doug’s Monthly”) at 12 years old. Having always shown an interest with numbers and budgetary management, Doug pursued a Bachelor of Business Administration degree at Howard University, graduating in 1996. By the age of 23, he bought his first house and by 25 he was running his own successful limousine and sedan service in the Detroit, MI area.
Doug invested in more real estate beginning in 2006, then in 2008 he saw many good companies substantially undervalued in the stock market because of the financial crisis. It was absolute panic so he took a chance on a few companies, knowing we would eventually come out of the recession and made a profit. He educated himself on investing in the stock market through continuous research and surrounding himself with other traders. He took control of his own 401K and established an IRA account by transferring old 401K’s into it. This gave him flexibility to use various strategies to yield better returns.
Doug's own finances have seen highs and lows so he designed a budget system he calls The Roadmap to Financial Freedom. This system helped him to stay focused in paying down debt, saving money, and planning for an early retirement.
Seeing an absence of financial literacy in our society coupled with his Christian roots, Doug developed a passion for helping others become successful in financial management. Through the experience he’s gained trading the stock market, he wants to help people develop a road map for building generational wealth. He says "many people have a misconception of the stock market because of their lack of knowledge, but it has proven to be the biggest wealth creator known to man." With Doug’s 20-plus years of experience in financial management, customer service and sales, he wants to educate and help you create a legacy that can be passed down for generations to come.
Contact Legacy Investing & Wealth Management today for a free consultation.